Invoice Discounting FAQs

How does invoice discounting work?

  1. We’ll advance an agreed percentage of your outstanding invoices, up to 90% of the full value
  2. When you send us your invoice (usually electronically), we’ll release the funds
  3. You’re then in charge of chasing payment as normal, and pay the funds directly to us
  4. Once your customers have made payment, we’ll release the remaining funds, minus a small fee
  5. We’ll then recalculate the funds available to you after each new transaction

Is invoice discounting right for my business?

At Aldermore, we’ve provided invoice discounting services to businesses across a wide range of different sectors, including manufacturers, wholesalers, business services providers, importers and more.

To be eligible for this facility, we ask that your business meets the following requirements:

  • You sell products or services on credit to other businesses, generating invoices for payment
  • You have an annual turnover of £250,000 or above
  • You have an established credit control department

If you don’t have an in-house credit control department, invoice factoring might be a better fit for your business.

What are the invoice discounting rates?

Every business is different, which is why we don’t offer a ‘one size fits all approach’. Instead, we’ll work with you to design a funding package designed around your business, with competitive and transparent charges agreed up front. All costs will be outlined in your offer letter, along with a Client Guide that will detail any additional fees that would apply for any services you may need in the future. There will also be an arrangement fee to pay.

  • Invoice Finance
  • Invoice Discounting